Bank of Georgia's parent eyes acquisition in Uzbekistan, CEO says

Lion Finance Group, the entity that owns Bank of Georgia, is exploring an entry into Uzbekistan's banking sector through the acquisition of a "major" local bank, according to CEO Archil Gachechiladze, who spoke with Bloomberg.

Gachechiladze indicated that the company's strategy involves replicating Bank of Georgia's successful digital banking framework in new territories, with a preference for larger financial institutions. "We're focused on top-three or top-five players. The key to unlocking that value is finding new markets where we can apply this model," Gachechiladze stated. He further clarified that Lion Finance Group prioritizes banks ranking among the top three in their respective markets, adding, "The top three is preferable. We don't go after small banks."

The report did not identify specific Uzbek banks under consideration for acquisition, nor did it detail any ongoing discussions or formal proposals.

Based on data from the Central Bank of Uzbekistan, reviewed by Gazeta.uz, the five largest state-owned banks in the country by assets are the National Bank of Uzbekistan (NBU), Agrobank, Uzpromstroybank (SQB), Asakabank, and Xalq Bank (People's Bank).

Uzbekistan's updated "Uzbekistan - 2030" strategy outlines a reduction in the number of state-owned banks from nine to seven by 2027, to six by 2028, to five by 2029, and ultimately to four by 2030. This plan signifies the government's intention to privatize five banks over the next four years. The government's fiscal strategy specifically targets the privatization of SQB, Asakabank, Aloqabank, and Turonbank in 2026 or later.

Fitch Ratings has identified Uzpromstroybank as the most prepared for privatization, potentially serving as a blueprint for the transformation of other state-owned banks. The sale of Asakabank and Aloqabank, however, may be deferred closer to 2030.